On April 20, pursuant to the Dodd-Frank Act, the SEC approved amendments to FINRA Rule 13201 of the Code of Arbitration Procedure for Industry Disputes (Industry Code). The amendments provide that a dispute arising under a whistleblower statute that prohibits the use of pre-dispute arbitration agreements is not required to be arbitrated under the Industry Code. The amendments to the rule will be effective on Mary 21, 2012. FINRA Regulatory Notice.
Dodd-Frank Act
CFTC Final Rule and Interim Final Rule on Commodity Options
On April 18, pursuant to Section 721 of the Dodd-Frank Act, the CFTC adopted a final rule authorizing commodity options to transact subject to the same rules applicable to other swaps. In addition, the CFTC adopted an interim final rule providing a trade option exemption for certain physically delivered commodity options used by commercial market participants. The final rule and the interim final rule will be effective 60 days after publication in the Federal Register. The compliance date for the final rule and the interim final rule will be 60 days after further definition of the term “swap” by the CFTC and the SEC. CFTC Fact Sheet. CFTC Q&A.
Volcker Rule Conformance Period Clarification
On April 19, the Fed, CFTC, FDIC, OCC and SEC issued a joint release clarifying that an entity covered by Section 619 of the Dodd-Frank Act, or the Volcker Rule, will have the full two-year period from the statutory effective date through July 21, 2014 in which to fully conform its activities and investments to the Volcker Rule requirements and any implementing rules adopted under the Volcker Rule, subject to the two-year period being extended by the Fed. Fed Release. Joint Release.
SEC and CFTC Rule Defining Swap-Related Terms
On April 18, pursuant to Title VII of the Dodd-Frank Act, the SEC and CFTC adopted joint rules to define certain terms related to the over-the-counter swaps market as part of the Securities Exchange Act of 1934 and the Commodity Exchange Act. The SEC rule will be effective 60 days after the date of publication in the Federal Register while the text of the CFTC rules will be published in conjunction with the adoption of final rules further defining “swap” and other terms later this year. SEC Release. CFTC Fact Sheet. CFTC Q&A.
SEC Extension of Comment Period for ABS Conflict Proposal
On December 13, the SEC extended the comment period for proposed Rule 127(b) that, pursuant to Section 621 of the Dodd-Frank Act, would prohibit material conflicts of interest in securitizations. Comments on the proposed rule must now be submitted by January 13, 2012. SEC Release. Proposed Rule.
CFTC Interpretation on Anti-Fraud Authority
On December 2, the CFTC announced an Interpretation related to its anti-fraud authority under the Dodd-Frank Act. The Interpretation provides: (i) the CFTC’s view of the meaning of the term “actual delivery” under Section 732(a) of the Dodd-Frank Act and (ii) guidance on how the CFTC will determine if the actual delivery exception applies to a transaction. Comments on the Interpretation must be submitted within 60 days of publication in the Federal Register. CFTC Release.
CFTC Final Rules on the Registration of Foreign Boards of Trade
On December 5, pursuant to Section 738 of the Dodd-Frank Act, the CFTC adopted final rules creating a new registration system for Foreign Boards of Trade (FBOT). The new registration system will replace the existing policy under which staff-issued no-action letters are relied upon by FBOTs providing direct access from the United States. The rule will be effective 60 days after the date of publication in the Federal Register. CFTC Fact Sheet. CFTC Final Rules.
CFTC Proposed Rule on Designated Contract Markets and Swap Execution Facilities
On December 5, the CFTC proposed regulations in accordance with Section 723(a)(8) of the Dodd-Frank Act that would establish a process for Designated Contract Markets and Swap Execution Facilities to make a swap “available to trade”. Comments must be submitted within 60 days of publication in the Federal Register. CFTC Fact Sheet. CFTC Q&A. Proposed Rule.
First Report of SEC’s Whistleblower Office Contains Some Surprises
On November 16, 2011, the SEC’s Office of the Whistleblower released its first annual report to Congress, as required by section 924(d) of the Dodd-Frank Act. The report only includes information about tips received after the final rules implementing the program became effective on August 12, 2011. As a result, it only includes seven weeks of data. Still, the information provides useful insights into the number and types of whistleblower complaints being received and some insights into the Office’s staffing and activities to date. Click here to read more.
Fed Adopts Final Rule on Annual Capital Plans
On November 22, pursuant to Section 165 of the Dodd-Frank Act, the Fed adopted a final rule amending Regulation Y to require bank holding companies with total consolidated assets of $50 billion or more to submit annual capital plans for review. The final rule also requires these banks to obtain approval from the Fed under certain circumstances before making a capital distribution. The final rule will be effective on December 30 and covered banks must submit their capital plans by January 9, 2012. Fed Release. Fed Final Rule.